Why Monopoly Game Owner Hasbro's Shares Are Diving Today

Zinger Key Points
  • Hasbro reports a 23% YoY sales decline in Q4 FY23, totaling $1.289 billion, missing analyst estimates.
  • FY24 outlook projects adjusted EBITDA of $925 million-$1 billion, anticipating declines in Consumer Products and Entertainment segment.

Hasbro Inc HAS shares are trading lower after the company reported fourth-quarter FY23 results.

Sales declined 23% Y/Y to $1.289 billion, missing the analyst consensus estimate of $1.355 billion.

Segment Revenue: Consumer Products fell 25% Y/Y, Entertainment segment decreased 49% Y/Y, while Wizards of the Coast and Digital Gaming increased 7% Y/Y.

Selling, distribution, and administration costs fell to $430.4 million from $666.0 million the prior year quarter.

The company reported an operating loss of $(1.20) billion versus $(125.7) million a year earlier.

Adjusted EBITDA for the quarter declined to $10.6 million from $327.2 million the prior year quarter.

Adjusted EPS of $0.38 missed the analyst consensus of $0.66.

Hasbro held cash and cash equivalents of $545.4 million and operating cash flow totaled $725.6 million as of December 31, 2023. 

The company reduced owned inventory by 51%, including a 56% decline in Consumer Products inventory in FY23.

Dividend: The company declared a quarterly dividend of $0.70 per share, payable on May 15, 2024, to shareholders of record as of May 1, 2024.

Outlook: Hasbro expects FY24 adjusted EBITDA of $925 million-$1 billion, with Consumer Products Segment revenue projected to decline 7% to 12%, Wizards of the Coast Segment revenue down 3% to 5% and pro-forma Entertainment segment revenue down $15 million.

The company raised a mid-term gross savings to $750 million by year-end 2025 from the previous target of $350 million to $400 million.

Also ReadHasbro’s Stock Outlook Dims: Analyst Downgrades To Neutral Amid Persisting Industry Headwinds

In December 2023, the toy maker announced additional strategic steps to steer the business for future growth after a review of its cost structure and organizational design, including a revised organizational structure.

Price Action: HAS shares are down 11.4% at $45.45 premarket on the last check Tuesday.

Photo via Wikimedia Commons

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsEquitiesLarge CapNewsGuidanceMoversBriefswhy it's moving
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!